Great Estates: Putting communities at the heart of regeneration

Edward Douglas - November 2016

RESPUBLICA RECOMMENDS Contents

Introduction 2

Context 2

Defining Estates

Case Studies 10 About the Author Mountearl Estate, , London – Type 1 11 Edward Douglas is a senior policy and projects officer at ResPublica. Seven estates, Milton Keynes, Buckinghamshire – Type 2 14 Ladywood, – Type 3 18 Acknowledgments Park Hill, – Type 3 22 ResPublica would like to thank the Mears Group who kindly supported this project. Special thanks are extended to Adam Wildman, Principal Research Consultant at ResPublica, for his editorial work on this project, and to Mark Latham from Urban Splash, Victor Chamberlain from Recommendations 25 Pocket Living, Denise Barrett from Birmingham City Council and David Gleeson and Kathryn Eames from YourMK for their help with the case studies. We would also like to thank Graham Allen MP; Mark Winterburn, Policy Advisor at the Royal Institute of British Architects; and Brian Endnotes 28 Robson, Policy and Research Programme Manager at the Joseph Rowntree Foundation.

About ResPublica

The ResPublica Trust (ResPublica) is an independent non-partisan think tank. Through our research, policy innovation and programmes, we seek to establish a new economic, social and cultural settlement. In order to heal the long-term rifts in our country, we aim to combat the concentration of wealth and power by distributing ownership and agency to all, and by reinstilling culture and virtue across our economy and society.

1 Introduction In this paper, we look at what the Government’s aims of tackling deprivation and spreading million for the 100 estates selected – current plans for estate regeneration can opportunity on the one hand; and boosting equivalent to £1.4 million each. It is our contention that communities should deliver for communities around the country – housing supply on the other. These aims be put at the heart of estate regeneration and what they cannot. To do this, we outline can be complementary but they are not To put that into context, the first phase of to maximise its potential for delivering new and develop a new typology of council necessarily so – in fact in some cases they regeneration of Sheffield’s Park Hill estate housing and boosting life chances around estates to understand what the priorities for can have an antagonistic relationship. This is required £39 million of public funding; the country. That means giving communities regeneration should be in different parts of particularly the case when communities are redevelopment of the Packington Estate in power over regeneration schemes where they the country, and assess whether the current not given a genuine stake in redevelopment. required £33 million of gap funding; are planned, and unlocking new opportunities policy and funding framework is sufficient to and it has been estimated that the average for funding schemes where they are needed meet them. We survey case studies to identify We will argue that we need a ‘One Nation’ cost of demolition alone of a single estate but currently not possible. examples of best practice, and use these to set approach to regeneration that advantages stands at £50 million.6 Viability relies heavily out how the forthcoming Estate Regeneration residents of estates and delivers homes where on the potential for densification, the needs On 13 July this year, Theresa May used the Strategy can reach its potential. We also look at they are required. The need to reconnect of existing residents, and land values. These opportunity of her first speech as Prime what more the Government needs to do if it is all parts of the country with economic vary across the country – what works in inner Minister to set out her ambitions to make serious about spreading prosperity to all parts opportunity and social wellbeing is difficult to London will not necessarily work in Dudley; Britain a country that works for everyone. For of the country. understate because it gets to the heart of the and what works in will not the new Prime Minister, this means looking at Prime Minister’s welcome ambition to make necessarily translate to Blackpool. Estate what government can usefully do to spread Context Britain a country that works for everyone. regeneration must work for everyone. But a opportunity to all parts of the country – reliance on the private sector is not sufficient particularly to those places that have been left The Government’s stated priorities of Under the current framework, this poses a set – it risks damaging existing communities to behind as our economy has shifted in the last estate regeneration are twofold: tackling of challenges. supply new homes in the South East, and few decades. deprivation and increasing housing supply. leaving behind other communities in weaker The Government announced a £140 million The Government has stated a preference for housing markets everywhere else. A good starting point for this agenda would regeneration fund as part of now-postponed schemes to be community led.3 This is the be estate regeneration. Millions of people Life Chances Strategy.1 But housing supply right one. Our research last year highlighted We cannot hope to meet all of these around the country live on estates, many was cited as a key aim of regeneration, after that satisfaction with a place is closely challenges in this paper. Our aim is to show of which are amongst our most deprived a report from Savills, commissioned by the linked to a range of health and well-being the nature of the challenge facing us in communities across a range of indicators Cabinet Office, claimed that London’s estates outcomes – and satisfaction with a place is different places around the country. We have – from health and education to incomes, could provide sites for 360,000 new homes closely linked in turn with how much of a done this by identifying the types of estates employment and crime. in the capital.2 On launching the Estate stake a person has in it.4 Moreover, it is most we should be concerned with, based on Regeneration Panel, Lord Heseltine suggested often the existing community who know analysis of over 100 communities in all parts of Regeneration has the potential to enable this was about social justice as much as what works and what does not work in their the country. people to flourish and to make estates great housing supply: area. If we want to transform estates for the places to live. But under the current policy better, we need to give people the power We then look at a set of case studies of current framework, communities are not guaranteed a “Estates regeneration is key to transforming to lead on their regeneration – as has been regeneration schemes to understand what genuine stake in the process. Many others will the lives of people living on poorly designed widely recognised.5 best practice looks like across these estate not see the benefits successful regeneration housing projects.” types, and what can be done to facilitate can bring because only £140 million has been Doing community engagement properly this best practice. We set out three policy made available for 100 schemes as part of In short, estate regeneration is pursued is neither easy nor cheap. The Government recommendations for the forthcoming the Estate Regeneration Strategy – and not as a ‘win win’: meeting demand for new has stated a preference for “commercially Estate Regeneration Strategy and for the enough is being done to unlock other forms homes and supporting existing residents. viable schemes which have the potential Government as it takes this agenda beyond of investment. In this paper, we will try to disentangle the to be self-financing”, with a fund of £140 the current work of Lord Heseltine’s Panel.

2 3 Defining Estates – Beyond Bricks Recently, there has been a lot of important Government of £140 million to 2030 – the 2. Housing demand: To judge whether an and Mortar work carried out on the first point, largely same amount currently available in total for estate is located in an area in which housing focused on meeting London’s housing initiatives on 100 estates.15 demand makes densification a priority, we There is no ’one size fits all’ model for shortage. Savills’ report Completing London’s have compared housing affordability data regeneration because there is no single type of Streets report published earlier this year found Methodology at the local authority level with the national estate. We know that just under 9 million people that up to 360,000 new homes could be built average. Affordability in this context means live in in and .7 An through densification of London’s estates.10 A To do this, we have analysed a cross-section the ratio of house prices to incomes. estimated 3,500 estates are in London alone, but more recent study found that this figure was of mainly large estates in England – 122 in there are social housing estates in and around likely to be nearer to 4,000 to 8,000 homes total. We have based our analysis on two Comparing deprivation on estates with towns and cities across the country.8 in the capital each year given the length of characteristics: affordability data allows us to divide estates regeneration projects and the already high into four categories: Estates, for the purpose of regeneration, must densities on many estates.11 What we lack is 1. Deprivation: To assess whether an estate be existing social housing. Most were built in an understanding of how best to advantage is relatively deprived (that is, deprivation the housebuilding drives of the interwar and existing residents and address deprivation levels are higher on the estate than the local postwar years. Beyond that, they can be big through this process of densification. authority area average), we have used Index of (such as in Barking and , Multiple Deprivation data at the Lower Layer where 26,000 homes were built in the 1930s) We need to move beyond bricks and mortar Super Output Area level and then rated this or small; be occupied by mostly social tenants, to understand what should be done in estates against the local authority ranking. or by a mix of social tenants and owner- outside of London and the South East where occupiers following the introduction of the deprivation is concentrated but land values Right to Buy policy; be integrated within a are not sufficient to make the business case dense urban environment, or “islanded” in the for densification. First, we need a clearer outer regions of a city; feature mainly high rise understanding of the problem. Relative Deprivation No Relative Deprivation buildings, mainly low rise, or a mix of the two; be of varying densities; and have been well or A further complicating factor is that a range poorly maintained.9 of policy initiatives over the last few decades, such as the Neighbourhood Renewal Fund Low Affordability 2 1 For the purpose of regeneration, there are two the New Deal for Communities (NDC), key considerations: have focused on ‘place’ improvements (e.g. housing, the community and the physical High Affordability 3 4 1. Its potential to provide sites for much- environment). Tackling deprivation on estates needed new housing: If a relatively low now means focusing more on ‘people’ related density estate is located in an area of high outcomes such as health, education and housing need, we can say that that estate skills, well-being and worklessness, a theme should be a candidate for densification. picked up by DCLG’s review of the NDC.1213 • Of the 122 estates we assessed, 24 (19.7%) fall into category 4. For the purposes of estate These outcomes cannot be addressed solely regeneration, type 4 estates are unlikely to be of concern to policy-makers. For the other 98, 2. Its ability to serve its residents: If through bricks and mortar regeneration.14 13.1% are type 1; 25.4% are type 2 estates; and 41.8% are type 3 estates. outcomes, such as the unemployment rate or However, a focus on people related outcomes life expectancy, are worse on an estate than could bring significant financial benefits – the surrounding locality, policy-makers should on 12 well known estates alone, reducing seek to deliver solutions to address estate- unemployment to local authority averages based deprivation. would generate revenue and savings for the

4 5 A Closer Look pursuit of new housing supply brings with Figure 1 - Estate types around the country, see Table 1 for colour guide it genuine advantages for existing residents. Type 1: Low deprivation, low affordability Involving residents and tailoring schemes to local need improves outcomes.17 We also As can be seen in Figure 1, Type 1 estates are know that maintaining low rents and secure largely concentrated in Inner London, where tenancies, and avoiding displacement of housing need is most acute and affordability people, is vital to reducing poverty, improving is lowest – in boroughs such as , well-being and reducing the housing benefit Tower Hamlets and Islington. The ratio of bill over the long-term.18 house prices to earnings is at least 13 and up to 16 in these places.16 At the same time, As these estates are concentrated solely in deprivation levels are lower than in the London, the issue of funding would appear borough as a whole. ostensibly to be ready-answered. However, the costs of demolition, building replacement That does not mean that challenges do not homes, provision of temporary rehousing, exist. Our research has found that income, the potential for loss of housing capacity, the access to housing and crime should be areas risk of increased crime as property sits empty, of concern. In our study, 44% of Type 1 estates and the dangers of damaging community are in the top decile for income deprivation bonds mean that this should not be taken and 81% are in the top quintile; for barriers to as a given.19 Moreover, there is a danger that housing and services, this reaches 56% and hyperdensification is pursued to maximise 88% respectively; and for crime, the figures are the commercial return of schemes on these 44% and 75%. estates. As has been found elsewhere, hyperdensification threatens ‘street life’ in the The challenge for regenerating Type 1 estates capital and damages life chances through is to ensure building new homes is done in a the degradation of public spaces and other way that: negative changes to the public realm.20 In The North-South Divide That is because, where land values are high, the next section, we examine case studies densification can deliver homes for market 1) Builds on existing success and supports to assess where densification can be both When we plot our 122 estates onto a map (see rent and sale that can generate revenue existing social capital and community bonds; community-led and financially viable. Figure 1), the geographical spread of these estates to cross-subsidise other tenures and wider 2) Addresses estate-based problems such as is striking. In our study, we find that estates across initiatives to address deprivation on an estate. crime and incomes. Type 2: High deprivation, low affordability the North East, North West and the Midlands are Where land values are low, it is not viable to in pockets of severe deprivation. do this – nor, where void rates are high, is Regenerating Type 1 estates Figure 2 shows that Type 2 estates are found densification the answer to local challenges. largely in Inner and Outer London and in high While this is only a small sample, it does suggest Type 1 estates are likely to be prime growth cities in the South East such as Milton that many of the most deprived places in the What policy makers need to realise is, candidates for regeneration because they are Keynes, and Brighton. These are places country are likely to miss out from densification-led regeneration is about more than just housing located in London where housing demand where housing need is high and affordability regeneration – and communities in the North and densification. Poor conditions in existing means that making best use of available is low. At the same time, deprivation levels the Midlands are likely to be left further behind. stock are not limited to London; and as Figure land is a priority. In these cases, it is vital that are higher than in the borough as a whole. That is because the focus of the Government’s 1 shows, high levels of deprivation exist on power is given to residents to shape the For example, seven estates in Milton Keynes Estate Regeneration Panel is on schemes that are estates across the country. development of their estates; and that the rate in the top 15% most deprived areas in the commercially viable and can be private sector led.

6 7 country; and such as Brent, that solely focuses on the delivery of new Regenerating Type 3 estates interventions that address disadvantage also Haringey and Barnet contain estates that are units on these estates risks extending existing provide increased tax revenues and reduce ranked in the top decile for total deprivation. problems rather than addressing them. For Types 1 and 2 estates, opportunities for pressures on public spending, so there is a successful regeneration exist – the question is case for additional capital and revenue funding In short, these are deprived parts of affluent Type 3: High deprivation, high affordability how to harness the potential of land values to to be provided by the Government. This is a areas, but that deprivation appears to vary do this. In Type 3 estates this is not possible, difficult challenge, and solutions will only arrive in and out of London. In our study, no Type On estates in places ranging from Blackpool so we need to assess what the Government over the long-term – but it is one that a One 2 estates in London are in the top decile for to Carlisle and from to Stoke-on-Trent, can do at the national and local level to Nation Government must address beyond the health or education deprivation; for those deprivation levels are particularly high but deliver opportunities where the private sector publication of the Estate Regeneration Strategy. outside the capital, the figures are 56% and land values are low. Grange Park in Blackpool, alone cannot. After all, tackling multiple 44% respectively. 55% of Type 2 estates are the Victoria Estate in Stockton-on-Tees, and disadvantage requires a strategy to address We now turn to look at current and recently in the top decile for income deprivation and Orchard Park in Kingston-upon-Hull rank within people-related outcomes, such as health, completed regeneration schemes across 84% are in the top quintile; for employment, the top 1% for total deprivation in the country. incomes and unemployment, alongside these estate types to understand the barriers the figures are 42% and 77%. place-related outcomes such as housing, the and opportunities that exist within the current These estates are performing worse than physical environment and crime.22 policy framework. The challenge for regenerating Type 2 estates their local authority areas on total deprivation is to: – many of which themselves are some of For Type 3 estates, a ‘bricks and mortar’ the more deprived in the country. They approach alone may not meet the needs of 1) Address existing people-related and place- also demonstrate high levels of multiple communities. Energy efficiency improvements related deprivation; disadvantage. In our study, 76% of Type reduce energy bills and thereby reduce 2) Deliver new housing to meet local needs. 3 estates are in the top decile for income poverty;23 improvements to the built deprivation; 73% are in the top decile for environment improve well-being and reduce Regenerating Type 2 estates employment deprivation; 63% for health crime.24 On estates where unemployment is deprivation; and 76% for education. above the area average, and where health In high growth cities such as Brighton, outcomes and educational attainment are Oxford, Milton Keynes and Bristol, housing While outside factors such as long-term below the local average, we also need to need is acute. If these cities are to reach their deindustrialisation have significantly consider what can be done to improve public growth potential, new sites for residential contributed to this, our findings suggest we service delivery and overcome disconnection development need to be utilised – particularly also need to recognise the role that public from opportunities and prosperity. where the green belt constrains land supply. housing estates have played in increasing the However, as with Type 1 estates, this is a goal cycle of deprivation. Many are victims of the A key barrier is funding. The £140 million external to the needs of estates in these disconnection that means estate residents available through the Department for cities, so it is again vital that communities are are cut off from opportunity and prosperity in Communities and Local Government’s Estate given the tools and powers needed to have their wider locality.21 Regeneration Panel and existing Government a genuine say over the direction and form support for housing investment, are either regeneration takes in their communities. The challenge for regenerating Type 3 estates not sufficient or not available for the types of is to: schemes needed on these estates; and local At the same time, the challenge for authorities are constrained by the Housing and developing Type 2 estates is to ensure the 1) Develop solutions to address multiple Revenue Account borrowing cap and overall drive to build new homes is harnessed deprivation across communities; funding reductions. This means that other to support wider efforts to address these 2) Explore new sources of funding for place- sources of funding, such as social investment, concentrations of deprivation. An approach based interventions. have a role to play in filling the gap. Successful

8 9 Case Studies What they demonstrate is what is possible Having set out the nature of the challenge within the current funding envelope for of regeneration, and what its aims should be regeneration; and what can – and cannot focused towards, we now need to understand – be achieved when the private sector, what can be done within the current public sector and residents act together framework across the estate types we have to repurpose and regenerate a place. They Mountearl Estate, Lambeth, identified. also show that there is no ‘one size fits all’ approach to regeneration – the type of London - Type 1 In this section, we survey case studies of estate, its location, its size and the existing current or recently completed regeneration community are all key variables. schemes that fit the Government’s priorities for regeneration: they are largely or jointly The conclusion from this is that central private sector-led, based upon community government’s role is to facilitate best practice. consultation, and for those in areas of high Once we have examined current examples housing need, they deliver higher densities. of best practice, we will look at what policy Crucially, however, we consider what can options are open to the Government that be done where land values cannot deliver can be introduced alongside the Estate the potential for cross-subsidy of wider Regeneration Strategy to maximise its regeneration. As we have seen, this is crucial potential. given the volume of estates that fit into this category, and the depth of deprivation and need in those places.

10 Background Regeneration Plan of the estate and its wider regeneration. The local community, including the local residents’ The Mountearl Estate is located in Lambeth, In this context, the Council agreed to dispose of association, have been directly engaged in one of the most densely populated London an underused car park and garage site on the the process of delivering the new community boroughs. While availability of land for new Mountearl Estate to Pocket Living, for 32 new 1 hub, a new outdoor gym, landscaping and a development is very limited, the number of and 2 bedroom homes for sale. These will be sold sensory garden. This has been co-shaped with households in the borough is forecasted to at submarket rate (80% of the local market price) residents, with infill development designed grow by 19% by 2026. to local residents who would otherwise be locked in this way an opportunity to give existing out of home ownership; and will be built to the residents the tools with which to deliver new The Housing Needs Assessment indicated Joseph Rowntree Lifetime Homes standard. The facilities and services from the bottom up. a pressing need for one and two bed units, developer’s use of modular construction meant and the Council has prioritised provision the build out time was only 9 months. Funded By of intermediate affordable to maintain and build mixed communities in the borough. The estate is less deprived than the borough The land was purchased using the money Mountearl is a small estate but surplus as a whole. That said, its residents still face key Pocket received from the GLA Housing garages and car park space was identified challenges – unemployment stands at 8.4%, Covenant Fund. As the development was as a possible site for new development above the borough average of 6.3%; and the for intermediate affordable housing, the given local housing need. Lambeth Council number of people considering their health to Council agreed to dispose of the site with a has said publicly that it is unable to fund be bad or very bad is 1.1% above the Lambeth restrictive covenant at a restricted valuation. regeneration and refurbishment of its 1960s average. The estate also sits in the top decile It was valued on this basis by Lambert Smith and 1970s estates and so has pursued for income deprivation nationally. The scheme Hampton acting on behalf of the Council different approaches to meet local need.25 was designed to allocate funding for facilities and Pocket paid the price the council valued and services to improve these outcomes. the land at. This was a key factor in making the delivery of homes at submarket prices Community Engagement viable. £80,000 of the proceeds from the land sale was ringfenced to fund the new Extensive community discussions, community hub. engagement and ongoing communication helped to shape the plans for densification

Benefits of approach Limits of approach

Speed and minimisation of disruption It is small in scale and new homes to existing residents are for sale only No improvements are made to No displacement of existing residents existing homes Generation of wider benefits for the It does not maximise capital receipts for the community and builds on existing successes local authority Densification that benefits local residents through restrictions on the eligibility to buy

12 13 Background

Milton Keynes is a city of contrasts. It is one of the country’s fastest growing cities, and is expected to outpace London’s growth this year.27 At the same time, it contains eleven Seven Estates, Milton Keynes, estates that fall within the most deprived 15% of areas in the country. Of these, seven have significant housing issues: Beanhill, Coffee Hall, Buckinghamshire – Type 2 Fullers Slade, Lakes Estate, Netherfield, North Bradville and Tinkers Bridge.

There are over 20,000 homes on these estates with an investment backlog of over £100 million, increasingly driven by reactive rather than planned repairs. Many have been identified as being in a very poor physical condition and in need of significant repairs and maintenance, but it has become financially unviable to develop planned programmes to make an impact on the backlog. Meanwhile, there is no community support for stock transfer. With around 50% of homes on the estate still owned by the Council, a regeneration programme that resolved the physical condition of council properties would not deliver comprehensive transformation.

At the same time, there is high demand for new housing. Regeneration offers an opportunity to build extra homes to meet local need whilst giving existing residents new opportunities to flourish and benefit from the wider city’s growth. In addition to the need for new housing, the conditions of existing homes need to be improved; unemployment on these estates is high – reaching 13% in Netherfield, far in excess of the city average of 4.6%; and life expectancies vary by 12 years across ward boundaries in Milton Keynes.

15 community development and engagement consultation and community participation. Funded By being the first phase of every regeneration Success cannot be judged yet, but it does scheme.29 As such, no plans have yet been demonstrate that fullscale engagement and Specific details on the funding arrangement announced on what regeneration will community participation can be put at the for the regeneration programme are not yet look like, but options on the table include heart of largescale regeneration. available. However, the LLP is an innovative refurbishment of existing homes, and solution to local needs that has been set the delivery of new units through either YourMK has also committed to ensuring up to harness the potential of public and infill on surplus sites or phased, partial existing residents – whether social tenants private funding and financing. As part of redevelopment of parts of the estates. or owner-occupiers – are able to stay in this, it is able to accommodate different the community where possible. There has funding streams (e.g. Housing and Revenue There is a primary focus on improving been a commitment to ensuring no net loss Account, General Fund, Developer Finance employment and local outcomes, with social of social housing across the programme and Institutional Finance). It is incentivised and economic indicators part of the strategic and to offering choice to residents. The key to generate surpluses to contribute to Key Performance Indicator (KPI) set for YourMK. challenge is whether this can be delivered future funding, and become financially self- Work is already underway in the form of within a commercially-framed approach. sustaining. employment and training initiatives to upskill residents, improve educational attainment, provide employment support, and offer direct Benefits of approach Limits of approach routes into the construction sector. The LLP approach for large schemes If done in the right way, the schemes will should help to mitigate problems Size and length of project means that there is reconnect residents with the economic associated with developer-led models that still the potential for uncertainty for residents opportunities in the city to foster inclusive see more disruption and delay by fostering and for delays if market conditions change – Regeneration Plan growth, improve poor quality housing stock productive collaboration between public particularly for owner-occupiers to ensure housing standards and places and private sectors This scheme is an instructive demonstration support well-being, and provide much of how public and private sectors can work needed new housing stock. Focus on delivering bespoke solutions for together to finance and deliver community- each estate, with powers to determine Too early to judge impact of this approach led regeneration. To meet the specific needs Community Engagement optimal mix of tenures on different estates of these seven estates, a Competitive Dialogue process was initiated to enable a bespoke, No decision has yet been taken on the Stated intention to be genuinely ‘whole estate’ regeneration programme, form that the regeneration programme community-led flexible enough to incorporate public and will take, while a survey of stock condition All residents can benefit – via engagement private forms of financing and funding. is undertaken. Meanwhile, YourMK has and offer of either a new home or worked to engage with residents and refurbishment YourMK, a limited liability partnership community stakeholders to build the (LLP) between Milton Keynes Council and capacity of communities to participate in the Stated focus on ‘people’ interventions – such Mears Group, has been set up to deliver regeneration process. as employment support – should ease high the asset management and repairs and levels of deprivation maintenance of all council owned stock, The stock condition survey together with and a 15 year programme of regeneration an assessment of funding, will determine Commitment to phased approach to beginning in March 2017. YourMK will the order of estates to be regenerated; with redevelopment should minimise disruption to deliver a community-led regeneration, with each scheme then shaped through year-long residents; and social tenants will protected

16 17 Background

Ladywood is an inner city district of Birmingham, home to some of the most impoverished communities in the city living in council homes built following slum Ladywood, clearance in the 1960s. At that time, 20 tower blocks were built in Ladywood. Since the early 2000s, work has been done to demolish Birmingham – Type 3 and refurbish council stock and introduce measures such as CCTV as part of efforts to improve quality of life and well-being.

The focus is moving from a deficit to an asset based approach. Parts of Ladywood are affluent; and its inner city location mean that the challenge is not to overcome physical disconnection but other forms of disconnection from opportunity and the labour market.30

19 Regeneration Plan offering tablet technology, in return for Benefits of approach Limits of approach training other local people. Regeneration in Ladywood is about assets, rather than the more traditional deficit Funded By model. Birmingham City Council have piloted Problems with existing housing stock – such Offers new ways to address key as damp or energy efficiency – that are key work with innovative social enterprise Town The Town Digital Hub pilot project is an indicators of poverty links between housing and poverty are not Digital Hub to deliver an online ‘one stop example of how social investment can fund addressed by this approach shop’ for local wellbeing services, called innovative approaches to regeneration WellBrum; and the public service delivery on Type 3 estates. Sponsored by the Royal is being better integrated locally through Society of Arts, it is delivered by a social The potential benefits are high; the level of a revitalised community and health centre enterprise (at a projected cost of £2,500 per It is currently difficult to measure impact – upfront capital investment is low compared hub.32 The Ladywood Health and Community 10,000 residents per annum city wide). This and therefore difficult to attract with bricks and mortar approaches Centre was built in the 1990s and is home does not include the cost of connecting long-term funding to regeneration to a number of voluntary, community and residents with the service, which are likely council-run projects, who each outreach to be particularly high for older, digitally within the community. excluded residents. However, the benefit Residents are enabled in project development to public services has been estimated to and receive the benefits of better public This is a local authority-led approach be around £10,000 per citizen per annum. service delivery without the cost of disruption to place-based public service delivery The barrier remains impact evaluation – to their homes and local places to address difficulties in working across the cost reduction to statutory services of public sector agencies and services, such this approach may not be clear for 5 years. as Clinical Commissioning Groups, GPs, the This raises uncertainty around long-term Department for Work and Pensions and collaborative funding for the project. Jobcentre Plus; and better connect people with local community and voluntary groups. The Centre’s operating costs are funded by Providing physical and digital hubs aims to Birmingham City Council, supplemented overcome artificial silos in service delivery by NHS contributions to premises and and centre service provision around the room hire charges. The Future Operating needs of individual people. The aim is to Model for this and other Community improve access to health and social care, Centres is currently being developed by the education, housing, emergency services, Council’s Place Directorate. There is a local criminal justice, and employment support community development trust with interest – particularly for those people most in developing the future of the Centre. disconnected from accessing support. Any potential asset transfer request will Community Engagement be considered in light of the Future Operating Model work. Meanwhile, The WellBrum Digital Platform was Birmingham City Council is working with developed in consultation with local the community and voluntary sector to partners and community groups. An open support bids for external funding, based evening was held at which the developer on a collaboration of core project to walked through the platform with users. offer holistic, progressive and coherent The intention is to support local mentors, pathways of support for local people.

20 21 Background South Yorkshire partnership and Homes and Communities Agency, over £20 million of Park Hill is a Grade 2 listed estate, consisting which was gap funding. As a Grade 2 listed of 996 flats overlooking Sheffield city building, funding was also provided to centre. Developers Urban Splash formed a ensure the renovation met English Heritage development agreement with Sheffield City criteria. Without this financial package, it is Park Hill, Council in 2004 to regenerate the estate, likely that Park Hill would have remained which at that point had very few remaining undeveloped or that a less ambitious residents following a period of decanting. approach would have been taken to its Sheffield – Type 3 Housing association Great Places is the redevelopment. landlord for the social homes on the estate. Alongside the need to make best use of Community Engagement this asset to meet local housing needs, the estate’s prominent city centre location made As stated above, the existing community regeneration vital to improving what had by the time regeneration began was very become an ‘eyesore’. small – only 26 households had to be rehoused. These residents were engaged Regeneration Plan to understand what worked and didn’t work about the estate through its history, The challenge for an estate of this kind has and residents were able to move into the been its listed status, which puts significant new building. In addition, Great Places has restrictions on the scope of renovation. Since worked with residents of the new block to then, the estate has undergone significant set up a residents’ association to support redevelopment. With the economic community integration and give residents a downturn delaying the scheme, after 12 voice as the scheme progresses.33 years – and two years after the original final completion date – only the first phase has With a low number of residents and a been completed. The first building has been phased approach fundamental to the renovated inside and out, and improvements scheme, 18 of the 26 social rented flats in made to the public realm. Employment the redeveloped block have been let to and business space has been provided on residents who have moved from elsewhere the lower 4 floors of the building, and the on the estate. The other eight are now local nursery school has been allocated new occupied by residents who were decanted premises. When finished, the redevelopment and have now been able to move back will deliver 874 apartments and 40,000 onto the estate. What remains unclear is the square feet of commercial space. impact of the decanting process on the pre- 2004 population, or of the costs to the local Funding authority of rehousing those people.

The total project costs were initially set at £160 million, including £39 million of public funding provided by the Transform

23 Recommendations 1. The Department for Communities Benefits of approach Limits of approach and Local Government should produce It is clear to many observers, and has been best practice guidance as part of the Renovation of this kind can genuinely affirmed by our analysis, that the current Estate Regeneration Strategy, with a new repurpose an estate and bring it back to regeneration drive lacks the funding Residents’ Charter at its core. life – affordable homes and a commitment Reduction of overall housing stock – needed to bring benefits to all parts of to mixed use development has brought from 996 to 874 apartments the country. It is also well-established Where regeneration schemes are viable, high quality housing and employment opportunities to this part of Sheffield that communities must be put at the we have seen that they can take different heart of the regeneration process where forms, and different approaches can schemes are viable. It is crucial that these be successful. What is lacking is an As the scheme has relied on a private sector two points are addressed by the Estate understanding of best practice across all lead, delays caused by the recession of 2007- Provision of new employment space to 08 have meant that only one of the blocks has Regeneration Strategy and beyond by the estate types. This is particularly the case support enterprise and economic growth been completed so far – while Sheffield has a Government. when it comes to community engagement, waiting list of 13,000 which – as we have argued – is at the core The Estate Regeneration Strategy should of successful schemes. Looming over the city, prior to investment be the first part of this work – not the Park Hill was dilapidated and notorious for The viability of the scheme partly rested on finishing line. There is a clear gap between Provision of a best practice framework, crime – it is now considered an asset to the the prior decanting of residents; and the im- what can be delivered by the Government with community engagement at its heart, city, and the scheme has won a series of high pact of this process has not been measured through the Estate Regeneration Strategy would help to ensure that residents are profile awards.34 35 in London and parts of the south east; empowered in the regeneration process. and what it can reasonably facilitate in The Authority should Park Hill’s architectural heritage makes it an other parts of the country. With significant also ensure that guidance on community outlier. It is Grade 2 listed – this has made deprivation on estates in all parts of the engagement forms a key part of its plan redevelopment more costly, but has provided country, this should be a key focus of the for a best practice guide on housing estate an opportunity to attract new buyers and Prime Minister’s Social Reform Cabinet regeneration. There is no perfect model of investment into the estate Committee. The Strategy therefore should engagement or consultation, but there are be seen as the starting point – of a wider some key principles that all engagement Unlike many other Type 3 estates which lie in strategy to connect people and places should uphold.36 outer regions of cities, Park Hill has a prime with opportunity and reduce multiple location neighbouring the city centre. This disadvantage. means that lower land values are not the barrier they are to regeneration of other Type The three recommendations outlined here are 3 estates in the North and the Midlands our suggested way ahead for policy-makers:

24 25 2. An Estate Endowment Fund should be It would do this by: investment into schemes that would improve One way that this could be achieved is established to support innovative estate- housing conditions on estates. Addressing through a Residents’ Charter containing based initiatives in perpetuity. • supporting evidence and best practice this is currently limited by EU legislation, four key principles: sharing;38 but Brexit offers an opportunity for this to With local authority borrowing for housing • providing seed funding to attract social be looked at again. In the long-term, the I. Transparency – residents have a right capped, and the Estate Regeneration investment into estates around the country, Government should explore partial VAT to be given all relevant information on Strategy accompanied with £140 million and signposting applicants to existing relief on refurbishment costs to support a scheme affecting their estate, upon over 100 estates, the Government and local funders. best practice in regeneration. Such financial which engagement can be based; authorities are focused on private sector incentives could be used to encourage funding for schemes. The problem is the 3. The Government should explore partial genuine community engagement to be put at II. Participation – we have seen the clear gap between parts of the country VAT relief for refurbishment costs to support the heart of regeneration programmes – such value of direct participation in shaping where high land values generate the means community-led regeneration. as schemes based on our Residents’ Charter. schemes such as Milton Keynes and to deliver wider benefits to estates; and Mountearl Gardens. Local resident panels where they cannot or where delivery of new Given these funding restrictions, we need and charrettes can engage with existing homes is not an appropriate way to meet to explore what other options are open tenant associations to allow people to local need. The consequence is that many to government to facilitate successful shape regeneration in different ways, places risk being left further behind. The regeneration. Concerns have been raised that such as the formation of design codes or potential gains of successfully regenerating the forced sale of high value local authority the prioritisation of improvements to the estates around the country are significant assets is likely to act as a disincentive to public realm. – both for the people who live on them local authorities engaging in regeneration and for the public purse. The examples of in London39; and changes to social rents III. Representation – all residents should Ladywood and Park Hill show that local may make it harder to make schemes viable, have the ability to have a final say on a authority funding can play an important particularly outside the south east.40 The regeneration plan. This can take different role, but both schemes also relied on either Government should consider what can be forms, but it provides a strong incentive social investment or gap funding. But there done to support schemes that meet the for the development of plans to keep the is a lack of rigorous data collection relating Estate Regeneration Panel’s criteria through needs of the community at its heart. to life chances, data which social investors harmonisation of wider policy at the local level. need to make an investment, as well as IV. Resident advantages - regeneration evidence on the wider success of different A good starting point would be a partial should be based on the assumption approaches to regeneration to spread best VAT relief on refurbishment costs. We have that existing residents – social tenants practice. A good start would be to attract seen that investment in refurbishment can and owner-occupiers alike – should more social investment into estates and bring gains on some estates, such as Park be advantaged. This can be through share best practice through a What Works Hill; and is a key part of options on the table the provision of improved housing Centre on estate regeneration, which for major schemes such as Milton Keynes. conditions, receipt of the full value could be funded by a newly created Currently, VAT is payable on the refurbishment of property values for home owners, Estates Endowment Fund drawn from part of existing property, but not on new build support into home ownership for renters, of the £140 million currently available. This social housing, which is zero rated. There are and security of tenure for social tenants would ensure the long-term legacy of the some reductions, for example, for measures through the maintenance of social Estate Regeneration Panel’s work without to improve the energy efficiency of buildings, tenancy agreements. requiring investment beyond that already but on the whole the incentives work against committed.37 investment in improving existing stock. This means that the tax system disincentivises

26 27 Endnotes

15 The 12 estates used in this analysis were: Wren’s Nest, Dudley; Lincoln Green, ; and , ; , ; , ; Pool Farm, Birmingham; Coal Pool, Walsall; 1 Prime Minister’s Office (2016) “Estate regeneration: article by David Cameron” [Online]. Available at: https:// Victoria Estate, Stockton-on-Tees; Grange Park, Blackpool; Gwavas, Cornwall; Bentilee, Stoke-on-Trent. On www.gov.uk/government/speeches/estate-regeneration-article-by-david-cameron [Accessed 31 October each of these estates, unemployment levels are above their local authority average. We calculated the 2016]. financial implications of raising employment outcomes on these estates to bring them into line with the local 2 Savills (2016) “Completing London’s Streets: How the regeneration and intensification of housing estates authority levels. The savings in Jobseeker’s Allowance, and the revenue (Income Tax and National Insurance) could increase London’s supply of homes and benefit residents” [Online]. Available at: http://pdf.euro.savills. uplifts, were calculated to 2030. The total financial impact was estimated at £139,948,870.87. co.uk/uk/residential---other/completing-london-s-streets-080116.pdf [Accessed 31 October 2016]. 16 DCLG – we have used lower quartile house prices and incomes here. 3 DCLG (2016) “Heseltine launches panel of experts to kick-start estates regeneration”, 9 February 2016 17 Harvey, A. & Julian, C. (2015) “A Community Right to Beauty”, ResPublica [Online]. Available at: https://www.gov.uk/government/news/heseltine-launches-panel-of-experts-to-kick- 18 Joseph Rowntree Foundation (2016) “Estate Regeneration: Briefing for expert panel” [Online]. Available start-estates-regeneration [Accessed 31 October 2016]. at: https://www.jrf.org.uk/file/49123/download?token=GNM3vzxY&filetype=briefing [Accessed 31 October 4 Harvey, A. & Julian, C. (2015) “A Community Right to Beauty”, ResPublica 2016]. 5 HTA, Levitt Bernstein, Pollard Thomas Edwards & PRP (2016) “Altered Estates: How to reconcile competing 19 Power, A. (2016) “Council estates: why demolition is anything but the solution”, LSE Politics and Policy interests in estate regeneration” [Online]. Available at http:// www.levittbernstein.co.uk/site/assets/files/2444/ Blog, 3 April 2016 [Online]. Available at: http://blogs.lse.ac.uk/politicsandpolicy/sink-estates-demolition altered_estates_2016.pdf [Accessed 31 October 2016]. [Accessed 31 October 2016]. 6 Power, A. (2016) “Council estates: why demolition is anything but the solution”, LSE Politics and Policy Blog, 3 20 HTA, Levitt Bernstein, Pollard Thomas Edwards & PRP (2015) Super Density: The sequel [Online]. Available April 2016 [Online]. Available at: http://blogs.lse.ac.uk/politicsandpolicy/sink-estates-demolition [Accessed 31 at www.pollardthomasedwards.co.uk/download/SUPERDENSITY_2015_download.pdf [Accessed 31 October October 2016]. 2016]. 7 Gregory, J. (2012) “In The Mix: Narrowing the gap between public and private housing”, Fabian Society 21 Rae, A., Hamilton, R., Crisp, R. & Powell, R. (2016) Overcoming deprivation and disconnection in UK cities [Online]. Available at: http://www.fabians.org.uk/wp-content/uploads/2012/04/InTheMix.pdf [Accessed 31 [Online]. Available at: https://www.jrf.org.uk/file/49432/download?token=ug9kI8JY&filetype=full-report October 2016]. [Accessed 31 October 2016]. 8 London First & Savills (2015) “Redefining Density: Making the best use of London’s land to build more 22 DCLG (2010) The New Deal for Communities Experience: A Final Assessment [Online]. Available at: http:// and better homes” [Online]. Available at: http://londonfirst.co.uk/wp-content/uploads/2015/09/Redefining- extra.shu.ac.uk/ndc/downloads/general/A%20final%20assessment.pdf [Accessed 31 October 2016]. Density-0915.pdf [Accessed 31 October 2016]. 23 Duggan, C., Julian, C. & Sagar, R. (2015) Out of the Cold, ResPublica 9 Lane, L. & Power, A. (2009) “Low income housing estates: a report to Hammersmith United Charities 24 Harvey, A. & Julian, C. (2015) A Community Right to Beauty, ResPublica on supporting communities, preventing social exclusion and tackling need in the London Borough of 25 Lambeth Council (2016) “Focus on: Pocket Living” [Online]. Available at: http://estateregeneration. Hammersmith and Fulham” [Online]. LSE Housing and Communities. Accessed 31 October 2016. lambeth.gov.uk/focus_on_pocket_living [Accessed 31 October 2016]. 10 Savills (2016) “Completing London’s Streets: How the regeneration and intensification of housing estates 26 These figures have been derived from simple calculations, based on ONS data, on the difference could increase London’s supply of homes and benefit residents” [Online]. Available at: http://pdf.euro.savills. between unemployment levels and health outcomes on estates, and outcomes in the local authority area as co.uk/uk/residential---other/completing-london-s-streets-080116.pdf [Accessed 31 October 2016]. a whole. They demonstrate the potential benefits to existing residents of regeneration that brings outcomes 11 Hanna, K., Oduwaiye, A. & Redman, P. (2016) “Another Story: The real potential for estate densification”, on estates in line with the area average, and do not account for population changes and other factors. Centre for London [Online]. Available at: http://www.centreforlondon.org/wp-content/uploads/2016/09/Final- 27 CEBR (2016) City Growth Tracker: Outlook for the UK’s economy in 2016 [Online]. Available at http://www. Report.pdf [Accessed 31 October 2016]. irwinmitchell.com/medialibrary/files/UK%20Powerhouse%20A5%20Mini%20Report%20email.pdf [Accessed 12 DCLG (2010) “The New Deal for Communities Experience: A Final Assessment” [Online]. Available at: 31 October 2016]. http://extra.shu.ac.uk/ndc/downloads/general/A%20final%20assessment.pdf [Accessed 31 October 2016]. 28 These figures have been derived from simple calculations, based on ONS data, on the difference 13 Gibb, K., Stephens, M., Reuschke, D., Wright, S., Besemer, K. & Sosenko, F. (2016) “How does housing affect between unemployment levels and health outcomes on estates, and outcomes in the local authority area as work incentives for people in poverty?” [Online]. Joseph Rowntree Foundation. Available at: https://www.jrf. a whole. They demonstrate the potential benefits to existing residents of regeneration that brings outcomes org.uk/report/how-does-housing-affect-work-incentives-people-poverty [Accessed 31 October 2016]. on estates in line with the area average, and do not account for population changes and other factors. 14 Joseph Rowntree Foundation (2016) “Estate Regeneration: Briefing for expert panel” [Online]. Available at: 29 YourMK (2016) “Find out about regeneration” [Online]. Available at: http://www.yourmk.co.uk/your- https://www.jrf.org.uk/file/49123/download?token=GNM3vzxY&filetype=briefing [Accessed 31 October 2016]. neighbourhood/find-out-about-regeneration/ [Accessed 31 October 2016].

28 29 30 Rae, A., Hamilton, R., Crisp, R. & Powell, R. (2016) Overcoming deprivation and disconnection in UK cities [Online]. Available at: https://www.jrf.org.uk/file/49432/download?token=ug9kI8JY&filetype=full-report [Accessed 31 October 2016]. 31 These figures have been derived from simple calculations on the difference between unemployment levels and health outcomes on estates, and outcomes in the local authority area as a whole. They demonstrate the potential benefits to existing residents of regeneration that brings outcomes on estates in line with the area average, and do not account for population changes and other factors. 32 Town Digital Hub (2016) “WellBrum” [Online]. Available at: https://towndigitalhub.net/wellplanet/wellbrit/ wellbrum/inner.htm [Accessed 31 October 2016]. Society 33 Inside Housing (2013) “Uphill struggle”, 19 July 2013 [Online]. Available at: http://www.insidehousing. co.uk/uphill-struggle/6527823.article [Accessed 31 October 2016]. The UK has one of the most centralised states in the developed world and one of the most 34 Platt, E. (2012) “Multi-million-pound makeover for Sheffield’s notorious Park Hill estate”, 21 September disaffected and politically passive populations in Europe. We hold our leaders in contempt, but 2012, Telegraph [Online]. Available at: http://www.telegraph.co.uk/culture/art/architecture/9551327/Multi- despair of doing anything for ourselves or our community. The dysfunction at the highest level million-pound-makeover-for-Sheffields-notorious-Park-Hill-estate.html [Accessed 31 October 2016]. of society stems from the collapse of our social and personal foundation. There is little doubt that 35 Woodman, N. (2013) “Park Hill wins three RIBA awards”, 7 February 2013, Hawkins Brown [Online]. we are becoming an increasingly fragmented and individualist society and this has deep and Available at: http://www.hawkinsbrown.com/news-and-events/news/park-hill-wins-three-riba-awards damaging consequences for our families, our communities and our nation state. [Accessed 31 October 2016]. 36 Housing Committee, London Assembly (2015) Knock it down or do it up? The challenge of estate Starting from the bottom up, the collapse of the extended family and the ongoing break-up of regeneration [Online]. Available at https://www.london.gov.uk/sites/default/files/gla_migrate_files_ its nuclear foundation impacts on all, but disproportionally so on the poor and on their offspring. destination/KnockItDownOrDoItUp_0.pdf [Accessed 31 October 2016]. Too many children at the bottom of our society are effectively un-parented as too much is 37 This would be similar to the Education Endowment Fund, which funds, summarises and carried by lone parents who are trying to do more and more with less and less. We know that disseminates evidence to improve educational outcomes around the country – see https:// the poorer you are, the less connected with your wider society you tend to be. Lacking in both educationendowmentfoundation.org.uk/. bridging and bonding capital and bereft of the institutions and structures that could help them, 38 This could be used to inform the best practice guidance that we recommend DCLG issue above; and too many poorer families and communities are facing seemingly insurmountable problems has the potential to support development of new forms of finance such as earnback mechanisms that could alone, unadvised and without proper aid. support improvements to places over the long-term. 39 Burroughs, L. (2016) “Estate Regeneration”, London Councils [Online]. Available at: http://www. Based on the principle of subsidiarity, we believe that power should be devolved to the lowest londoncouncils.gov.uk/node/29833 [Accessed 31 October 2016]. appropriate level. Public services and neighbourhoods should be governed and shaped from 40 Joseph Rowntree Foundation (2016) “Estate Regeneration: Briefing for expert panel” [Online]. Available at: the ‘bottom up’, by families and the communities. These neighbourhoods need to be served by https://www.jrf.org.uk/file/49123/download?token=GNM3vzxY&filetype=briefing [Accessed 31 October 2016]. a range of providers that incorporate and empower communities. Moving away from a top- down siloed approach to service delivery, such activity should be driven by a holistic vision, which integrates need in order to ascertain and address the most consequent factors that limit and prevent human flourishing. Local and social value must play a central role in meeting the growing, complex and unaddressed needs of communities across the UK.

The needs of the bottom should shape provision and decision at the top. To deliver on this, we need a renewal and reform of our major governing institutions. We need acknowledgement of the fact that the state is not an end in itself, but only one means by which to achieve a greater end: a flourishing society. Civil society and intermediary institutions, such as schools, faith groups and businesses, are also crucial means to achieving this outcome. We also need new purpose and new vision to create new institutions which restore the organic and shared society that has served Britain so well over the centuries.

30 SOCIETY SOCIETY SOCIETY SOCIETY

In this paper, we make the case for putting communities at the heart of estate regeneration to maximise its potential for delivering new housing and boosting life chances around the country. That means giving communities power over regeneration schemes where they are planned, and unlocking new opportunities for funding schemes where they are needed but are currently not possible.